Thomas Daniels
In a recent SEC filing, BlackRock’s Global Allocation Fund disclosed its acquisition of an additional 43,000 shares of the iShares Bitcoin Trust as of April 30. This follows previous disclosures on May 28, revealing the fund’s exposure to Bitcoin through its Strategic Global Bond Fund and Strategic Income Opportunities Portfolio.
BlackRock is strategically integrating Bitcoin into its investment portfolio, reflecting its increasing interest in the digital currency market. The latest share purchases indicate a growing trend among traditional financial institutions towards investing in Bitcoin and Bitcoin ETFs.
Bitcoin Expansion
The approval of Bitcoin ETFs has notably shifted the investment landscape, with approximately 80% of ETF purchases originating from retail investors using online brokerage accounts. The involvement of major financial players like BlackRock, alongside giants such as Chase and Morgan Stanley, underscores a significant shift as more large-scale investors enter the digital asset space.
A spot crypto ETF, such as those BlackRock is investing in, tracks the price of a specific cryptocurrency and allocates portfolio funds into that asset. These ETFs, traded on public exchanges, enable investors to include them in their standard brokerage accounts, much like other traditional funds.
BlackRock’s BTC Goals
In March, BlackRock made a notable move towards incorporating Bitcoin by filing with the SEC to include Bitcoin ETFs in its Global Allocation Fund. The filing detailed plans to purchase shares in exchange-traded products (ETPs) that directly hold Bitcoin. BlackRock stated, “The Fund may acquire shares in exchange-traded products (“ETPs”) that seek to reflect generally the performance of the price of bitcoin by directly holding bitcoin (“Bitcoin ETPs”), including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.”
This initiative aligns with BlackRock’s broader investment strategy for its Global Allocation Fund, a mutual fund designed to diversify through a wide range of assets, including equities, bonds, and potentially Bitcoin ETPs. The fund invests globally in equity, debt, and short-term securities of corporate and governmental issuers, maintaining at least 70% of its assets in these securities under normal market conditions.
As of March 2024, the fund manages $17.8 billion in assets and has achieved a year-to-date return of 4.61%. Its objective is to leverage international investment opportunities and generate consistent long-term gains.
